Government looking at inheritance tax

[HarryVanderspeigle]

It says on the news today that the treasury are looking at reforms. Potentially looking at increasing the seven year rule, or a lifetime gift allowance. I don't really see how that would work as we all know that wealthier people will spend more on their children for things like weddings, university expenses, getting on the property ladder etc. But if it is to be reformed, how would you do it?

I often wonder if the objection is because 40% is so high. Would it actually raise more if it became 20% on estates over £100k? I can't see them putting the percentage up and we all know that very rich people find loopholes anyway.

Clam down!

Not on heritance, where did i mention inheritance? oh i didn't! i specifically talked about property and tax on sales, which the UK doesn't have on primary residence sales or even on inheritance, so i sold my primary residence, moved into the inherited property, which was below the £1m th.

According to Treasury leaks, Nom Doms haven't left or not in the numbers previously published.

Caveat that with we wont know until official figures published, however the initial report was from people with vested interests in getting more to relocate - so why believe them? their evidence was purely anecdotal and possibly self serving.

Yoube got an asset, you can live in it and no longer pay rent, you can let it and get rent or you can sell it. I'm not going to weep for people who have inherited millions because let's face it if they've just gone over the million they aren't going to be paying thousands for ten years. Even higher amounts tax free for farms and maybe farmers should pass on a share in the farm well before it is likely to be a problem.

We should all be opposed to tax.

The government needs to be much better at spending other people's money.

How would we have the NHS, roads, schools, firemen etc etc without taxes?

Yep, this headline was taken from payroll data collected from some selection companies, most of these non-doms haven't left (yet). The real ones with significant money aren't on those payrolls though. This was on FT a few days ago but i'm too lazy to find it now

Can you say more about the payroll data? Ie is it people on PAYE

Interesting guardian read today that despite a wealth tax introduced in Spain the super rich haven’t left in any great number , but they may be investing more ( in Spain ) to avoid some of the tax - sounds interesting

The only thing I find unreasonable about inheritance tax, is that you can’t offset buying and selling cost.

items sold at auction for a hammer price of £10000, with an auction charge of 8% plus vat, you receive £9040, but are taxed on £10,000

selling a house with 1.5%plus vat estate agent fees and legal costs. You are taxed on the 100% value of the house, but receive about 98% of that after fees.

After my parents died, I had to pay a lot of tax. I actually do agree with this! But it really annoyed me. Ditto, not being able to offset the costs (considerable) of clearing the house and prepping it for sale.

I think the estate should be taxed on the amount to be distributed plus the valuation of assets retained by beneficiaries.

I agree
Costs to the executor are excluded so why not all costs to dispose of the estate

Good points about offset of costs. I wonder whether it would make more people likely to enter the process in good will?

I truly believe that IHT is a “just” tax (I. Know some disagree) having recently paid a large amount. A lot of it’s done on an “honour system” eg reporting gifts and easily portable valuables, so things that just seem unfair are likely to reduce collection.

i did enter it with a good will and have left it with a slightly sour taste in my mouth. I still think it helps towards levelling society.

What's not difficult to understand is that you're talking about the exact same scenario. You just can't see it. You're the parent and your kids, like @exasperatedflatmate are the ones being gifted. You won't have any tax to pay twice, you'll be dead. Your kids, enjoying their inheritance, might have some to pay. And bloody rightly so.

It's a 300 year old bullshit.